Related videos:
Floridians will face a historic increase in electricity costs starting in 2026, after the state's Public Service Commission (PSC) approved an agreement that will allow Florida Power & Light (FPL, the largest utility company) to charge billions of dollars more over the next four years.
The plan, defended by the company as necessary for investments in infrastructure and renewable energy, has faced immediate backlash from consumer organizations that are already anticipating a legal battle that could reach the Florida Supreme Court.
The accumulated increase will exceed $6.9 billion
The approval of the agreement entails an increase of $945 million in 2026 and $705 million in 2027, along with additional fees anticipated for solar projects and battery systems between 2028 and 2029.
All of this could raise the bills by a total of $6.9 billion, according to warnings from organizations opposed to the plan such as Florida Rising, LULAC Florida, and the Environmental Confederation of Southwest Florida.
By 2029, residential bills are projected to rise by about $8 per month on average, with gradual increases each year.
Although the commissioners acknowledged some discomfort regarding the extent of the agreement, the majority described it as a "balanced" decision.
Commissioner Gary Clark defended the decision, stating that the new rates are "fair and reasonable," while FPL's president and CEO, Armando Pimentel, praised the measure as "a victory for our customers and for the entire state."
The company asserts that, despite the increases, the bills will remain below the national average.
Consumers would take the fight to the Supreme Court
The main opposition comes from the Public Advisory Office, a state entity responsible for defending users, along with other groups who view the increase as a blow to residents, particularly low-income households.
Attorneys Bradley Marshall and Robert Scheffel Wright stated that the process has not adequately represented the interests of consumers and anticipated legal actions.
"I believe this case will end up in the Florida Supreme Court," Marshall noted after the vote.
One of the most frequently expressed grievances among the opposition is that while homeowners will pay more, large corporations could benefit from lower burdens, which has heightened the negative reaction that followed the approval.
According to the report from Local 10, those who supported the agreement are politically appointed commissioners, which has increased public scrutiny regarding the legitimacy of the evaluation process.
How much will the bills increase?
The increases will vary depending on the areas served by FPL
Clients in the traditional area of FPL
Current bill for 1,000 kWh: $134.14
Estimated bill in 2026: $136.64
Continuous increases every year until 2029.
Customers from the northwest of Florida (formerly Gulf Power territory)
Current bill: $143.60
Estimated invoice in 2026: $141.36
They will also face subsequent increases.
Additionally, consumers are already facing another charge of nearly $12 per month in 2024, aimed at covering costs resulting from hurricanes. This fee is not part of the new increase, which raises concerns about the accumulated impact.
FPL had already requested the increase in March
In March of this year, FPL submitted a initial request to increase rates with the aim of raising up to $9 billion, citing reasons such as population growth, infrastructure expansion, and increased investment in solar energy and smart grids.
At that moment, the company argued that the adjustment was essential to maintain the reliability of the service in a state where energy consumption is growing rapidly.
During the analysis of that proposal, citizens expressed that the rates are already too high, especially for elderly individuals and families with limited incomes.
Public hearings were expected to discuss the issue, but the approval of the new agreement accelerated the outcome that consumers feared: the acceptance of the largest rate increase in FPL's history.
A future of higher bills for millions of users
With the decision already made, more than 12 million customers in Florida will see their bills increase starting in 2026, with increases continuing each year until 2029.
Although FPL claims that the increase will allow for the modernization of the grid, expand the use of renewable energy, and maintain competitive costs, consumer groups argue that the burden primarily falls on families, while the company and large corporations benefit.
Now, the debate will shift from the regulatory level to the judicial, in what could become one of the most controversial cases regarding public services in Florida's recent history.
Filed under: